Difference Between Trading and
Profit and Loss Account and Income Statement:
income statement and trading and profit and loss
account are prepared to ascertain the net result of
the business concerns. Some business concerns who
have adopted British Accounting System, prepare
trading and profit and loss account to determine the
net result of the business, while some others who
have adopted American Accounting System, prepare
income statement for the same purpose. Different
terms are used under the two systems of accounting.
Some American terms are given below which are
equivalent to British terms.